Form 4: Clipper Realty CEO David Bistricer Awarded Long-Term Incentive Plan Units

David Bistricer, Co-Chairman and CEO of Clipper Realty Inc., received Long Term Incentive Plan Units (LTIP Units) that will vest in 2025 and 2027, convertible into common stock.

Summary

• David Bistricer, Co-Chairman and CEO of Clipper Realty Inc., was granted Long Term Incentive Plan Units (LTIP Units) on March 12, 2024.
• 61,224 LTIP Units will vest on January 1, 2025, and are convertible into an equivalent number of operating partnership units (OP Units).
• Each OP Unit is redeemable for cash equal to the price of a share of Clipper Realty's common stock or, at the company's election, one share of common stock.
• An additional 109,184 LTIP Units will vest on January 1, 2027, and are also convertible into OP Units.
• Following the transaction, Mr. Bistricer directly owns 878,466 shares of common stock and 987,650 LTIP units.

Sentiment

Score: 7

Explanation: The document indicates standard executive compensation practices, suggesting stability and alignment of interests. The sentiment is neutral to positive.

Positives

• The granting of LTIP Units aligns the CEO's interests with the long-term performance of Clipper Realty.
• The vesting schedule encourages long-term commitment from the CEO.

Future Outlook

The LTIP Units are designed to incentivize long-term performance, suggesting a focus on future growth and value creation for Clipper Realty.

Industry Context

Granting LTIP units to executives is a common practice in the real estate industry to align management's interests with those of shareholders and incentivize long-term value creation.

Stakeholder Impact

• Shareholders may view the LTIP Units as a positive sign, aligning management's interests with long-term value creation.
• Employees may see this as a sign of confidence in the company's future.

Key Dates